Energy Wholesale Market Review, 28 August 2020

• Day-ahead power rose 15.2% to £47.25/MWh on decreasing wind generation throughout the latter stages of the week.
• September 20 power climbed 16.9% at £42.95/MWh and October 20 power increased 11.4% to £43.5/MWh.

• Q420 power moved 8.5% higher to £49.00/MWh.
• The annual October 20 contract rose 8.4% to £47.78/MWh, 5.7% lower than the same time last year (£50.69/MWh).

Forward curve comparison

Annual October Contract

• Day-ahead peak power was up 2.2% to £47.00/MWh.
• September 20 peak power gained 8.4% at £46.09/MWh, and October 20 peak power increased 3.8% to £48.65/MWh.

• The annual October 20 peak power lost 4.6% to £52.89/MWh.
• This is 7.8% lower than the same time last year (57.34/MWh).

Forward curve comparison

Annual October contract

Seasonal baseload power contracts

Seasonal baseload power curve

• All seasonal power contracts boosted this week, up on average by 6.8%.
• Winter 20 and summer 21 expanded 8.3% and 8.6% respectively, rising to £51.00/MWh and £44.55/MWh.

• All seasonal peak power contracts rose this week, up 4.0% on average.
• Winter 20 and summer 21 peak power increased 4.6% and 4.6% respectively, rising to £58.02/MWh and £47.75/MWh.

Oil and Coal

Carbon

• Brent crude oil prices remained relatively unchanged last week averaging $45.37/bl, with prices now settled following recent spikes in a near five-month high.
• Market oversupply issues have been overshadowed this week amongst growing concern surrounding Hurricane Laura, which has this week been upgraded to a Category 4.
• Some oil facilities in the Gulf of Mexico have evacuated pre-empting the early landfall experienced in South-West Louisiana.

• API 2 coal prices dropped 2.2% last week to average $53.98/t.
• The UN Secretary general announced India must steer away from coal despite its requirement for cheap energy.
• Despite previous weeks of a slipping EU ETS price, prices rose 6.9% to average €27.75/t this week.
• The market experienced mixed feedback amid uncertainty surrounding the EUA-December 20 auction.

Wholesale price snapshot